New Delhi: Pakistan’s central government debt rose to Rs 81.9 trillion during July-May of fiscal year 2025-26, a report has said, citing the government.
A report published in the Business Recorder said total domestic debt stood at Rs 58.1 trillion (Pakistani rupee), while external debt, excluding obligations to the International Monetary Fund (IMF), amounted to Rs 23.8 trillion.
Total central government debt was Rs 77.9 trillion in July 2025, comprising Rs 54.5 trillion in domestic debt and Rs 23.4 trillion in external debt.
“Total central government debt stood at Rs 77.9 trillion in July 2026, including domestic debt of Rs 54.5 trillion and external debt of Rs 23.4 trillion,” the report said.
Debt increased by Rs 4 trillion over the first 11 months of the fiscal year.
“During the 11 months, the total debt of the central government increased by Rs4 trillion, or 5.2 per cent, marking the slowest pace of increase in the last 15 years on an 11-month fiscal-year basis,” according to the report.
Aurangzeb said Pakistan’s fiscal responsibility and debt limitation act requires a gradual reduction in public debt, targeting a debt-to-GDP ratio of 50 per cent by FY33 through annual reductions beginning in FY24.
According to the report, the debt-to-GDP ratio was estimated at 68.5 per cent in June 2026. Based on public deposit data available through end-March 2026, the ratio for FY26 was estimated at 62.2 per cent.
The government has also pursued debt-management initiatives such as debt buybacks, retirements and a shift toward longer-tenor borrowing instruments.
Interest payments during the first nine months of FY26 fell to Rs 4.9 trillion from Rs 6.4 trillion a year earlier, a decline of 23 per cent.
(IANS)
